How We Appraise Projects

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Invest in Cantata
Property Strategy
How We Appraise Projects

 
 

Every time we walk away from a potential project, we regard that as a very positive result. Due diligence is key, and the spreadsheet never lies.  Something that might look exciting at the outset may turn out to be a no-go when examining the numbers in more detail.

We have a team around us whose job is to help us appraise each contending project that we identify.   These are the steps we will take:

  • Look at the initial numbers: likely build costs, end market values, additional costs (e.g. CIL Community Infrastructure Levy costs to the Council), GDV (Gross Development Value), profitability ratios

  • Assess the likelihood of planning consent via a detailed appraisal from our planning consultant

  • Where necessary, ensure with the architect that our assumptions about what sq metres and number of flats we can achieve are achievable

  • Deeper look at the development costs via our builder and QS (Quantity Surveyor)

  • Explore exit strategies (Plan A, B and C) if we were not to obtain the full planning we are seeking

  • Assess worst case scenarios and upside opportunities

  • Estimate all other costs, as appropriate: e.g. structural engineering, party wall, building control, contingency, utilities during build etc

  • All the way through, seek the views of outsiders such as estate agents and sourcers, but don't take anything at face value: check every assumption and view